Fleet-Average Rule: The fleet-average rule governs employers operating a fleet of 20 or more qualifying vehicles (depending on the average lease value). The IRS has set up the maximum vehicle values to be used in calendar year 2010. The maximum values for which the fleet-average rule may be used are $20,300 for passenger automobiles and $21,000 for trucks or vans (up from $19,900 for both in 2009).

Cents-Per-Mile: The cents-per-mile rule determines the value of an employee's personal use by multiplying the standard mileage rate (50 cents per mile for 2010) by the number of miles driven for personal purposes. The maximum values for the cents-per-mile rule are $15,300 for passenger automobiles and $16,000 for trucks or vans (up from $15,000 and $15,200, respectively, in 2009).

Click here to view Rev. Proc 2010-10, 2010-3 I.R.B. 300 (Jan 14, 2010)

The IRS has released Forms 5498-SA and 1099-SA for the 2010 tax year along with their instructions. Form 5498 must be filed by the trustees and custodians of HSAs, Archer MSAs, and Medicare Advantage MSAs to report contributions to (and the fair market value of) these accounts. They also must file Form 1099-SA to report distributions. These forms are not to be used until 2011 when the 2010 tax year is due.

Click here to view a copy of 5498-SA (2010) (HSA, Archer MSA, or Medicare Advantage MSA Information).

Click here to view a copy of 1099-SA (Distributions from an HSA, Archer MSA, or Medicare Advantage MSA) (2010).

Click here to view the instructions for both forms.

The IRS has issued question-and-answer guidance on the recent changes to the Code by the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act). This Act’s changes enhance 401(k) and other benefits for military personnel in qualified military service.

The guidance consists of 20 questions and answers. Some of the areas the Q&As cover are:

• Survivor and Disability Retirement Benefits With Respect to Military Service.
• Differential Wage Payments
• In-Service Distributions

Those with plans covering employees on active military duty should review these Q&As very carefully because they make clear some areas that have been gray before.  

Click here for a copy of Notice 2019-15: Miscellaneous HEART Act Changes

The Department of Labor's Employee Benefits Security Administration has posted a notice of publication of an Employer's model notice regarding eligibility for premium assistance under Medicaid or the Children's Health Insurance Program (CHIP). The Children's Health Insurance Program Reauthorization Act of 2009 (CHIPRA) includes a requirement that the Departments of Labor and Health and Human Services develop a model notice for Employers to use to inform Employees of potential opportunities currently available in the Employee's state of residence for group health plan premium assistance under Medicaid and the CHIP.

Click here to view the Federal Register notice.

Click here to view the model notice.

The Department of Labor's Employee Benefits Security Administration posted a document containing the interim final rules with request for comments for implementing the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act (MHPAEA) of 2008. This Act requires parity between mental health or substance use disorder benefits and medical/surgical benefits with respect to financial requirements and treatment limitations under group health plans and health insurance coverage offered in connection with a group health plan. The regulation is effective on April 5, 2010, and applicable to plan years beginning on or after July 1, 2010.

Click here view the Federal Register.

Click here to view the fact sheet.

Click here to download the latest User Guide.

The IRS has updated Publications 15-B, 502, 503, 521, 969 and Form 8889.

The IRS announced the 2010 standard mileage rates for taxpayers to be reimbursed for the costs of operating an automobile for business, charitable, medical or moving expenses.

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The 16.5 cents per mile mileage rate for medical care is a 7.5 cent decrease from the 2009 rate of 24 cents.

Click here for the full report.

Michelle's Law, which was signed into law by George W. Bush last year, came into effect Oct. 9, 2009.

Named for Michelle Morse, a student who lost her insurance coverage under her parents’ plan because cancer treatment required her to quit school and lose her full-time student status, the law would allow students to take up to a year of medical leave without losing their health insurance. 

This month, Lafourche Parish School Board in Louisiana was the first group to exploit a loophole in the law which allows for self-insured entities to opt out of Michelle’s Law.  While students of Lafourche Parish School Board employees covered under their parents’ plan will not be guaranteed coverage under Michelle’s Law, the board says that they intend to review each student’s situation on a case-by-case basis.

The Lafourche case is one that needs to be followed closely by those in the Consumer Driven Healthcare market. Their approach to students’ coverage during medical leave could prove to be either a victory for MERPs and self-funding private insurance if handled well or a disaster that could fuel the fires of harsher regulations and reforms that would deliver significant blows to the CDH movement if handled poorly.

The defense-related legislation (National Defense Authorization Act for Fiscal Year 2010, Pub. No. 111-84 (Oct. 28, 2009)) recently signed by the President includes amendments to the FMLA’s provisions regarding qualifying exigency leave and covered service member leave for employees who are relatives of service members.

Qualifying Exigency Leave
The Act redefines the employee’s entitlement to qualifying exigency to reflect that the employee’s spouse, son, daughter, or parent must be on “covered active duty” in the Armed Forces (or have been notified of an impending call or order to such duty).

Covered Service Member Leave
The Act also expands an employee’s entitlement to leave to care for a covered service member with a serious injury or illness. In addition, the definition of serious injury or illness has been expanded.

While no changes have been made to the FMLA’s health benefits, these expanded leave rights may result in more employees taking FMLA leave, and thus will affect group health plan administration.

No effective date has been specified for these provisions. Generally, this indicates that they are effective when signed into law.